NEW YORK, September 16, 2021--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two classes of notes issued by Sunrun Demeter Issuer 2021-2. The transaction is collateralized by a diversified pool of 34,068 leases and PPAs associated with residential solar photovoltaic installations ("PV Systems"), some of which have energy storage equipment. The total aggregate discounted solar asset balance ("ADSAB") based on a discount rate of 5.0% (PV5 ADSAB), consisting of the discounted payments of the leases and power purchase agreements ("PPA") is approximately $631.9 million. The securitization share of the ADSAB is approximately $595.0 million.
The three largest geographic concentrations include California, Arizona, and Massachusetts, which together represent approximately 67.6% of the number of PV Systems and approximately 70.6% of the ADSAB. The portfolio consists of approximately 76.5% PPA agreements and 23.8% lease agreements by ADSAB of customer contracts and approximately 68.8% PPA agreements and 26.4% lease agreements by number. The weighted average original tenor of the power purchase agreements and leases is 279 months and the weighted average remaining term of the agreements is 247 months. The weighted average FICO of the underlying customers of the PV Systems is 747.
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.
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Usman Khan, Director (Lead Analyst)
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